AC Slater and Zach Morris are partners in a firm. They are trying to decide on a new project to take on, but they can only afford one project. They both have favorites as listed in the table below. Assuming a 10% discount rate, which project should they choose? Investment Year 1 Year 2 Year 3 Year 4 ACs -400 200 200 200 Zachs -500 175 175 175 175

Question 2 options:

A.) Zachs because it has the highest NPV

B.)ACs because it has the highest NPV

C.)Zachs because the initial investment is lower

D.)Neither, both NPVs are too low.